By Bill Hornbarger, Chief Investment Officer
Three Things to Watch
- The Federal Reserve’s (Fed’s) annual Jackson Hole Economic Policy Symposium will be Thursday to Saturday, and the highlight will be Chairman Powell’s speech on Friday. The markets would like a clear understanding of what the Fed is seeing in the economy and what it would take to cut rates again. The overall theme of the symposium this year is “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.”
- Earnings from multiple major retailers will give a glimpse into consumer behavior as well as the impact of tariffs. Walmart, Home Depot, Lowe’s and Target will report this week. We will be watching closely for forward guidance on trade policy in particular.
- After Friday’s summit in Alaska between Presidents Putin and Trump, Ukraine President Zelensky is scheduled to meet President Trump on Monday in Washington. European leaders are expected to join him to seek “strong security guarantees to protect both Ukraine and Europe’s vital security interests” and reinforce the message that Ukraine’s borders cannot be changed by force. The United States is putting pressure on both countries for a quick peace deal.
Three Things to Know
- The surrender of the Empire of Japan in World War II was announced by Emperor Hirohito on August 15, 1945, and formally signed on September 2, 1945, ending the war. The United States had dropped two atomic bombs on Japanese cities the prior week, hastening the end of hostilities. (Source: Wikipedia)
- In July, 71 large U.S. companies went bankrupt, the highest monthly total since the 2020 pandemic. This follows 66 and 64 fillings in June and May, respectively. Year-to-date, there have been 446 large bankruptcies, the most in 15 years. (Source: The Kobeissi Letter)
- Similar to what happened in the United States last year when the Fed cut rates, the last 125 basis points (bps) of bank rate cuts by the Bank of England have seen the 10-year Gilt rise 87 bps. (Source: Jim Bianco)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.